Chapter Name: Evaluate business compliance to risk management framework
Description:The module focuses on providing learners with the skills and knowledge necessary to assess a business’s adherence to its established risk management framework. This module covers the key components of a risk management framework, including identifying, assessing, and mitigating risks, as well as monitoring compliance with internal and external regulations. Learners will explore methods for evaluating how well business operations align with the framework, how to assess risk controls, and how to conduct audits or reviews to ensure compliance.
Purpuse:The purpose of this module is to enable learners to evaluate how effectively a business complies with its risk management framework. By understanding the principles of risk management and compliance, learners will be able to identify areas of vulnerability, evaluate the adequacy of risk controls, and ensure that the business is meeting its legal and regulatory obligations. This module aims to equip learners with the skills to assess and improve risk management processes, which ultimately support the business in maintaining operational stability and protecting its assets from potential threats.
Rational:The rationale behind this module is based on the importance of effective risk management in ensuring business continuity, protecting assets, and maintaining compliance with legal and regulatory requirements. Businesses face a variety of risks, including financial, operational, reputational, and legal risks. Failure to identify and manage these risks can result in significant financial losses, legal liabilities, and damage to the business’s reputation. By evaluating business compliance to a risk management framework, learners can help organizations proactively identify risks, strengthen controls, and improve compliance to safeguard their operations.
Chapter Assessment
Scope of Practical Skill
Key Requirement 1: Performance against the risk management matrix is accurately evaluated
Learners should assess whether risk mitigation strategies are being followed and if the business aligns with its risk framework.
Assessment Questions
Assessment 1 : Develop a risk management matrix
Learners are expected to create a risk management matrix that identifies potential risks to the business, their likelihood, and impact, and outlines mitigation strategies.
Assessment 2 : Evaluate performance against the matrix
Learners must assess business performance in relation to the risks identified in the risk management matrix and evaluate how well the business is managing these risks.
Assessment 3 : Evaluate effectiveness of the matrix
Learners are expected to evaluate whether the risk management matrix is effectively identifying, mitigating, and managing the key risks, suggesting improvements if necessary.